Luxury goods

From this, the noun luxuria and verb luxurio developed, "indicating immoderate growth, swelling, ... in persons and animals, willful or unruly behavior, disregard for moral restraints, and licensciousness", and the term has had negative connotations for most of its long history.

[9] It is much less used for objects from the fine arts, with no function beyond being an artwork: paintings, drawings, and sculpture, even though the disparity in cost between an expensive and cheap work may have been as large.

Originally, luxury goods were available only to the very wealthy and "aristocratic world of old money" that offered them a history of tradition, superior quality, and a pampered buying experience.

[13] The trend in modern luxury is simply a product or service that is marketed, packaged, and sold by global corporations that are focused "on growth, visibility, brand awareness, advertising, and, above all, profits.

[15] The customer base for various luxury goods continue to be more culturally diversified, and this presents more unseen challenges and new opportunities to companies in this industry.

[26] According to the Global Wealth and Lifestyle Report 2020, Hong Kong, Shanghai, Tokyo and Singapore were four of the five most expensive cities for luxury goods in Asia.

[27] In 2014, the luxury sector was expected to grow over the following ten years because of 440 million consumers spending a total of 880 billion euros, or $1.2 trillion.

[28] The advertising expenditure for the average luxury brand is 5-15% of sales revenue, or about 25% with the inclusion of other communications such as public relations, events, and sponsorships.

However, though the number of such goods consumed may stay constant even with rising wealth, the level of spending will go up to secure a better experience.

[34][35] Several manufactured products attain the status of "luxury goods" due to their design, quality, durability, or performance, which are superior to comparable substitutes.

[citation needed] These items, while not necessarily being better (in quality, performance, or appearance) than their less expensive substitutes, are purchased with the main purpose of displaying wealth or income of their owners.

[citation needed] These kinds of goods are the objects of a socio-economic phenomenon called conspicuous consumption and commonly include luxury cars, watches, jewelry, designer clothing, yachts, private jets, corporate helicopters as well as large residences, urban mansions, and country houses.

[44] The sale of luxury goods requires a high level of client service, human touch, and brand consistency.

Three of the world’s biggest luxury conglomerates— LVMH, Kering, and Richemont — significantly increased the share of annual sales captured from their directly operated stores and e-commerce over the past decade.

[47] Many luxury brands use flagship boutiques to illustrate their unique vision or heritage,[48] often through distinctive architecture[49] that transforms them from storefronts to tourist attractions.

[52] Luxury brands use seasonal boutiques to follow their well-heeled clientele as they leave major cities for smaller resort towns in the summer and winter.

In the United States, the development of luxury-oriented department stores not only changed the retail industry, but also ushered the idea of freedom through consumerism, and a new opportunity for middle- and upper-class women.

[57] Fashion brands within the luxury goods market tend to be concentrated in exclusive or affluent districts of cities worldwide.

These include: Celebrities have played a transformative role in elevating the appeal and desirability of luxury goods, acting as key drivers of consumer trends in the global market.

With the advent of social media platforms like Instagram, TikTok, and YouTube, their influence has grown exponentially, creating an immediate impact on consumer behavior.

Posts and appearances featuring luxury items often lead to global trends, with high-end brands gaining significant visibility and desirability.

High-profile figures, including Beyoncé, Jennifer Lopez, and Victoria Beckham, have popularized extravagant diamond rings, especially for engagements and anniversaries.

Public appearances showcasing such pieces often inspire consumer interest in similar designs, driving demand for both custom and branded luxury jewelry.

[73][74] Red carpet events, such as the Academy Awards, Cannes Film Festival, and Met Gala, serve as platforms for celebrities to present the latest offerings from high-end fashion houses.

For example, George Clooney's association with Omega watches and Charlize Theron’s campaign for Dior’s J'adore perfume exemplify how celebrity partnerships create a strong emotional connection with products.